Part One of this series provided details about how the JOBS Act will make it easier for small businesses to obtain financing through crowdfunding or crowdsourcing. The reduced red tape and lifted restrictions makes now the best time to take a good hard look at crowdfunding as an alternative solution for your business.
Now is the time to Get Ready:The SEC is currently working on the rules and guidelines for crowdfunding. However, what business owners can start doing now is getting a pitch ready for investors to review. If your company is a start-up, it is always a great idea to work with your local Small Business Administration (SBA) office or a business counselor to develop a business plan, which is needed to pitch your business. If you have an existing business and want to use crowdfunding to finance a growth strategy, you need to review your business and financial plan to put together your pitch. Now is the time to work on these things so that once the guidelines are released, your company can take advantage of this great opportunity.
Crowdfunding, the Next Big Option: Alternative lenders such as Triton Financial Solutions are developing platforms that will allow start-ups and other small businesses to connect with investors, allowing them to engage one another. Crowdfunding, once fully in place, will become the definitive way to find investors to fund all types of business ventures. Companies like Triton Financial Solutions are at the forefront in this space, and traditional funding sources may soon become the second choice for business owners seeking funding. As investors position themselves in this space in the near future, access to capital will become easier, especially for small business owners.
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